Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Compare combining multiple debts into one new loan against your current total minimum payments.
| Debt | Balance ($) | Rate (%) | Min Payment ($) |
|---|---|---|---|
| #1 | |||
| #2 | |||
| #3 | |||
| #4 |
$25.71
Debt consolidation combines several separate debts into a single new loan, ideally at a lower blended interest rate, simplifying multiple payments into one and potentially lowering the total monthly payment. This calculator compares a prospective consolidation loan's payment against your current total minimum payments across all debts, directly answering the identical "Debt Consolidation Savings Calculator" question.
Enter up to 4 existing debts (balance, rate, minimum payment), then the interest rate and term you've been offered for a consolidation loan covering the total.
Total Debt = Sum of All Balances
Current Total Payment = Sum of All Minimum Payments
New Consolidated Payment = standard amortized loan payment on Total Debt at the consolidation rate/term
Monthly Savings = Current Total Payment − New Consolidated Payment
A lower monthly payment from consolidation sometimes comes from a longer term rather than a truly better rate -- always compare total interest cost over the full term, not just the monthly payment, before deciding a consolidation offer is genuinely better.
Take the page's example: $8,000 of debt with a current combined payment of $240 per month. A consolidation loan of $8,000 at 12% over 36 months has a payment of roughly $265.71, and you would repay about $9,566 in total. That payment is higher than the $240 you pay today, yet the loan is finished in three years. The lesson is that the "monthly savings" figure can be negative, and that is not automatically bad: a higher payment on a shorter, cheaper loan can mean you are debt-free sooner. Conversely, stretching the same loan to 60 months would lower the payment but add interest. Always look at the payment and the term together.
The calculator compares payments, not the full payoff cost of the existing debts. Your current minimum payments include shrinking interest and can leave you paying for many years, so a consolidation that looks more expensive per month may actually be cheaper overall. Because it works with up to four debts and fixed minimums, treat the answer as a screening tool, not a quote. It also cannot predict whether you will be approved, or at what rate.
If you are unsure whether consolidation, a payoff plan or a debt management plan fits your situation, a nonprofit credit counselor can walk through your full budget.
Not automatically -- it depends on whether the new rate is genuinely lower and whether the term length increase (if any) offsets the rate improvement. Always compare total interest cost, not just the monthly payment.
Compare against the Debt Avalanche Calculator or Debt Snowball Calculator instead -- sometimes an aggressive payoff plan on your existing debts beats a consolidation loan with a mediocre rate.
Yes, in your own comparison. Fees reduce the money you actually receive or add to the balance, so a loan with a slightly lower rate but a large fee can cost more than it appears.
No. A lower payment through a longer term can increase total interest. Decide whether you value cash flow now or the lowest total cost, and choose deliberately.
Yes. Enter only the debts you would actually pay off with the new loan, so the comparison reflects the payments that would disappear.
Reference: Consumer Financial Protection Bureau